Magna Carta for Homeowners and Homeowners’ Associations

The Magna Carta — England’s “Great Charter” of 1215 — was the first document to challenge the authority of the king, subjecting him to the rule of the law and protecting his people from feudal abuse. The Magna Carta’s fundamental tenets provided the outline for modern democracies.

– Heather Whipps, www.livescience.com

By Ernesto C. Perez II

Almost a month ago, Republic Act No. 9904(An Act Providing for a Magna Carta for Homeowners and Homeowners’ Associations, and for Other Purposes) was signed by the President Arroyo.

RA 9904 was designed to be the vehicle to bring peace and comfortable living conditions in many communities. This is according to Senate Majority Floor Leader Juan Miguel Zubiri. He said that this law will benefit all homeowners from the different socio-economic classes. It was made sure that the benefits will be encompassing. Sen. Zubiri further said that the Magna Carta would “hopefully put an end to the confusion on where to register homeowners’ associations.”

Under RA 9904, every association of homeowners shall be required to register with the Housing and Land Use Regulatory Board (HLURB). This registration shall serve to grant juridical personality to all such associations that have not previously acquired the same by operation of the General Corporation Law or by any other general law.

In addition, the existence of associations previously registered with the Home Insurance Guarantee Corporation (HIGC) or the SEC shall be respected, and the said associations shall not be charged a penalty when they register with the HLURB after RA 9904 takes effect.

As licensed real estate brokers, I think that we should be well-versed with new laws that affect our clients who want to purchase properties in gated communities – be they high-end or low-end subdivision projects – so that we could give them ample and educated advise should they ask our opinions about it.

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104 Comments

Gregory Floro
on February 26, 2010 at 09:55

Thank you for your excellent article on the law for villages like ours. I live in Ayala Hillside Estates, Q.C. and it seems many of the villagers have questions regarding their rights and the rights of the association. Would you know where I can get a copy of R.A. 9904? I would love to disseminate that together with your article to all the villagers.

I am currently working on a simplified version of RA 9904. Most likely, it will be available by the end of the month. Do check out the website or subscribe to our newsletter for further information. Thanks for visiting the website.

1. Is there a legal basis for HOA dues to be based on the size of lot property?
2. Is the HOA due something that can be solely decided upon by the board or does it have to be voted upon by the simple majority?
3. If the rules and by-laws were not voted upon by the simple majority, is it automatically considered null and void?

By law, the developer cannot turn-over the subdivision project to the HLURB.

Based on Section 31 of PD 957, upon completion of the subdivision project, as certified to by the HLURB, the roads, alleys, sidewalks and playgrounds shall be donated by the owner or developer to the city or municipality and it shall be mandatory for the local governments to accept provided, however, that the parks and playgrounds may be donated to the Homeowners Association of the project with the consent of the city or municipality concerned.

I am reading your articles every so often. They are excellent and useful for my purposes. I am now a president of our homeowners association in Angeles City, pampanga. Here is one question. Based on the new Magna Carta of Homeowners Associations, the association is managed by a Board of Directors. When does the right of RATIFICATION apply? I understand the power to ratify resides in the general membership. Are the decision/s of the board subject to ratification by the general membershp? If yes, on what ground/s?

I sure did find your comments very useful for me as president of my association. But there is this issue about the matter of RATIFICATION by the general membership. According to my directors who are attorneys like, the Board is sole sole authority, and not the general membership. What the Board decides, remains. And cannot be brought to the general assembly. The Board’s decision is FINAL? Cannot the members of the Board in a majority rule, decide to bring an issue before the general membership? The supreme authority resides in the people who voted the Board in power, di ba? This is enshrined in the Phil Constitution. Sovereignty resides in the people and all authority emanates from them.

Hi Ronaldo,
Sorry for the very delayed reply. Since the HOA is a juridical person (a fictitious person created by law) it can only act through another entity. This entity is the Board of Directors whose members are natural persons (with flesh and bone). It is partly true when others say that the Board is the sole authority in a HOA. However, Section 32, HLURB Resolution No. 770, Series of 2004 and Section 10, RA 9904 contains specific acts that need the approval of the (simple) majority of the members of the Association. Therefore, absent the approval of the majority of the members the enumerated acts of the Board become null and void.
Stated differently, the decision of the Board is often final except for those specific enumerated instances contained in the Articles of Incorporation and By Laws of the HOA, the Rules and Regulations promulgated by HLURB (Resolution No. 770) and those found in existing laws (RA 9904) and jurisprudence.
Ratification of the acts of the Board apply only in the specific instances enumerated by the rules and regulations or by law. Not all actions of the Board need ratification by the majority of members of the Association unless such acts will be presented by the Board for ratification (in this case concurrence) of the members.
I hope this is still helpful to you at this time.
Best regards,
Atty. Jojo

I think Ronnie has a good point, can the villagers undo a contract, aggreement or a motion that the village Board of Directors has voted on and approved? Is this covered under R.A. 9904? I believe it requires a 2/3 majority of the whole village?

Hi Greg,
As I stated in my reply to Ronnie, not all actions of the Board need the approval of the majority of the members of the Association. Corollary to this, not all contracts, agreements entered into by the Board can be subjected to a vote or referendum by the members of the HOA. Only those instances mentioned in the rules and regulations promulgated by the HLURB and in RA 9904 that can be subjected to the mandatory approval of the majority of the members. Generally, there is no 2/3 vote requirement in the governance of HOAs. This is only applicable to corporations existing by virtue of and under the Corporation Code of the Philippines (Batas Pambansa Bilang 68). However, Section 14, RA 9904 states that through a signed petition of 2/3 of the Association members, subject to a verification and validation by the HLURB,the Board of Director of a HOA may be dissolved for causes provided in its By Laws. This is a signed petition and not a vote of 2/3.
Cheers!
Atty. Jojo

Atty. Jojo, i only have simple concern. can or may a registered owner or a president of a homeowner can apply and file his candidacy for election on his province? despite he is an active member of certain association in the city? thank you and MORE POWER

Thank you very much for your question. Being a president of a HOA located in a city is not bar to filing a certificate of candidacy for an elective position in the province. If the candidate is lucky enough to win the election then he is faced with a choice whether to give up his position in the HOA or not.

I am working as an administration secretary. I am confused to what will be the action to be taken to the delinquent members of the association. Can you give us choices except for the penalties being charge to their association dues? Is it possible to take a part of the member’s property as payment for the large amount of their dues?

Hi Melanie,
Every member of a HOA has a right and obligation that needs to be explained carefully to determine the consequences of exercising such rights and fulfilling the obligations that come with enjoying such rights.
One of the basic obligations of a member of a HOA is to pay the membership fees, dues and special assessments along with attending meetings of the Association. The duties of the member in a HOA are enumerated in Section 7, Resolution 770 and Section 8, RA 9904. Failure to pay the membership dues makes a member become delinquent or what is called a “member not in good standing”. Now, according to the law [RA 9904], the BY LAWS of the Association should provide for the guidelines and procedures in determining who is a delinquent member. In Section 8, Resolution 770, it is the Board who shall establish such guidelines and procedures in determining who is a member who is not in good standing. In both cases, due process shall be strictly observed.
Hence, I could not give you a suggestion as to what to do with your members who are delinquent (particularly in not paying their dues). The By Laws of the HOA should hold the answer to your question. If there is none, point out this matter to the Board so that they may act on it. In other HOAs, it is provided in their By Laws that the non-payment of the dues become a lien on the property subject to the procedure called for in registering the said lien as mandated by the By Laws.
Read the By Laws of your Association very carefully. They may contain the provisions that you are looking for. Good luck.
Atty. Jojo

I am a new owner of a townhouse in a new subdivision. Presently, the HOA was registered by the developer with SEC and its officers are incorporators of the developer with a Constitution and By-Laws. I would like to know the procedure on how the HOA can be transferred to the real homeowners. I would also like to seek clarification on the following:
1. Is it true that per Real Estate Law, there is a need for the subdivision to be occupied 50% before it can be turned-over to us? The subdivision is projected to house 7,000 units of which 2/3 had been constructed. It had been constructed in 6 phases and 1-4 has been completed. But phases 1-3 is about 90% sold but about 50% occupied. Please give us direction on what to do because we want the HOA to be turned over to us due to the big fees we are contributing monthly.
2. What are the prerequisites for the turn-over and what do we do?
3. The present HOA controlled by the developer has not complied with the provisions of the Constitution and By-Laws, i.e. Annual Meeting, Disclosure of Status of Funds, etc. Due to this, can we form our own HOA and register it with HLURB?
Thanks and best regards.

I am so glad i happen to search this site of yours and i find it very interesting and informative. I have something to ask, “can the board of directors formulate the parameters or rather conditions of a member in good standing without having to get the 2/3votes of all members and implement it after issuing a board resolution?” The reason i asked is because, we are having our board of directors election and the elecom and board agreed on determining these conditions as a basis for a member to run as board member. the exact thing here is that in order for a member to run as board of director in this coming election, they set conditions on matters of qualification of candidates. And one of the condition setforth is a member should have no outstanding financial obligation to the association; if in case they pay the past dues and obligations, they cannot run until one year has lapsed after the date of payment. Please enlighten me

Hi Alex,
I apologize for the very delayed reply. Typically, when a HOA is registered, its Articles of Incorporation and By Laws, duly approved by the majority of the members of the Association, is given to the HLURB. Now, the By Laws is the operating guide of the HOA. One of the provisions it should contain are the qualifications and numbers that will comprise the Board (See Section 11, RA 9904). However, Section 60 of Resolution 770 provides specific qualifications of a director and officers of the HOA. One of those enumerated by Section 60 is that the member of the Board of Directors should be “a member in good standing”. Moreover, he or she must be an actual resident of the subdivision, housing or relocation project for at least six (6) months as certified by the Association secretary or in default thereof, by a member having personal knowledge thereof; and has not been convicted by final judgment of an offense involving moral turpitude. These are the qualifications listed in Section 60, Resolution 770.

Now, if your By Law does not contain such qualification then the Board of Directors have the power to determine the qualifications of the members of the Board. However, despite saying this, the Board should have this action, in determining the qualification of the members of the Board, approved by a simple majority of the members of the Association considering that the said act of the Board is an amendment to the By Laws of the Association which requires such approval pursuant to Section 15 in relation to the last paragraph of Section 12, RA 9904.

A board member is a position of leadership in the community. Hence, it is typical if the would-be leader would be required to have no outstanding obligation (meaning he dutifully pays his association dues) before he can be considered to seek a position of leadership. The Board would be setting a bad example if some if not all of the members do not pay their dues, or have outstanding and unpaid dues. Also, non-payment of dues makes him or her “a member not in good standing”, which disqualifies him from being voted upon as Director pursuant to Section 60, Resolution 770.

I repeat, if there are other additional qualification that were introduced by the Board aside from those already enumerated in your current By Laws, then the said additional qualification should undergo approval of the members of the Association. The approval is merely a “simple majority” only and not by 2/3 votes of all members. As I stated earlier, in one of my replies, there is no 2/3 vote requirement in the governance of HOAs. It is only in corporation where this is present and required.

We just started our homeowner’s assoc here in our place. I just want to know how to register it in securities and exchange comission. What are the requirements and how much is the fee we are going to pay. Thank you very much……..

Pursuant to Section 8, RA 9904, registration of HOAs are with the HLURB now and not with the SEC. The documentary requirements for the registration of a HOA are as follows:

1. Articles of Incorporation – signed by all 5 to 15 incorporators on the last page.

2. By-Laws- signed by all 5 to 15 incorporators on the last page.

3. Written Undertaking by the Incorporators – to change the corporate name in the event that another person, firm or entity has acquired a prior right to the use of said name or one similar to it; and to comply with all the rules and regulations of the HLURB.

4. Information Sheet – contains the name of the association, principal office address, list of the members of the board of directors or trustees and their addresses, list of officers and their positions, list of the members of the association.

5. Notarized Certification as to the existence or absence of a HOA in the subdivision, territorial jurisdiction of the HOA, name and address of the nearest existing HOA.

6. Notarized Authorization – written authority of the representative of the association.

7. HOA Tax Identification Number (TIN).

For a better guide to the Rules on Registration of HOAs you can read HLURB Resolution No. R-771, Series of 2004. The fee for the registration of HOA is contained in HLURB Resolution No. R-760, Series of 2004. The Registration of HOA – the examination of the Articles of Incorporation is P650.00; the By-Laws is P650.00; and Books is P200.00. As far as I know these fees are still applicable and there is no increase in the legal fees collected by the HLURB. Maybe they will increase the fees considering that the HLURB has adopted a new 2009 Rules of Procedure effective May 9, 2010.

I hope these informations have been helpful to you and your fellow members in your HOA. Warm regards

Hi there! Thanks for having this article. I’m currently reviewing our HOA’s by-laws and I’m looking at the its Amendment section. During our visit to HLURB, a certain lawyer mentioned that our BOD can actually amend it without having to follow the one-thirds (of the population) quorum because of the magna carta. Did I get her right? Hope to hear from you soon. I’ll definitely be checking more of your site. More power to you.

Do I have the right not to pay the monthly due because the association’s officers failed to do their responsibilities of protecting the rights of the neighborhood against loud noise and maintaining the vacant lot? I hire people to clean the area and cut the tall grasses.I intend not to pay the monthly due to refund the amount I spent for cleaning the area. According to our officers, it is my responsibility to clean the vacant lot adjacent to me.
Further, the association rules that the monthly due shall commence on the day of the construction of the house. I was charged monthly dues on the years I was not yet a resident of the subdivision allegedly to maintain and protect my lot. However, I found out that the other vacant lot owners are not being charged the monthly due. Since then, I am not paying the monthly due to refund the amount they charged me and threatened me to file a complaint against me in our barangay. They are forcing me to pay. According to the officers, I should file a complaint to HLURB and make my claim to the previous officers and not to them. But these new group of elected officers are also the same officers and board members of the same association that charged me illegally. Yearly, the association conducts election but we always come up with the same sets of persons to form the board. Am I right in my action? Please enlighten me. Thank you.

Your article here were very informative. However, I pardon me if I am still at a loss after reading through the primer and the actual RA. We lived in a gated community here in QC and our TCT has some “restrictions” attached to it referring to a certain document embodied in Annex B attached (but I can not find where it is attached to)and part of Doc. No xxx, Page No xx, Bk. No. XXX, Not Pub Makati XXX..

Now my question is since the common areas (roads and open spaces) were already donated to the city government a long time ago, can I personally opt NOT to join the homeowners association? can I cancel my membership? I lived in the middle of the community/village by the way and have no other access except for the guarded roads. You see I am planning to rebuild my house and turn it into a 5-door apartment that does not in anyway violate the City Building Code and zoning ordinance but they are giving me a hard time.

“(a) To compel a homeowner to join the association, without
prejudice to the provisions of the deed of restrictions, its
extensions or renewals as approved by the majority vote of the
members or as annotated on the title of the property; the
contract for the purchase of a lot in the subdivision proJect;
or an award under a eMP project or a similar tenurial
arrangement;”

I badly need your help regarding our homeowners association. I’m new here and very disappointed that the village is in a mess. To cut a long story short, our asso was previously registered with sec with the old set of board of directors, after 8 years, finally the quorum was met and the new set of board of directors were elected. As per RA 9904, our asso should register with HLURB so what happens with the previous registration with SEC and the previous set board of directors? Hope to hear from you soon, thanks and Godspeed…

Good morning, Atty. Jojo! I just have one quick question which I REALLY hope you can answer right away: Can a homeowners’ association prepare its own by-laws GUIDED by HLURB guidelines, or must it follow the HLURB guidelines (e.g., 13) At the ACKNOWLEDGMENT on page 10, place the complete names of all the incorporators with their respective tax identification numbers, community tax certificate numbers, and date/place of issuance; indicate also the number of the pages of the by-laws and the complete name of the association;–this is found under by-laws, which is really specific…”ON PAGE 10″) TO THE LETTER? We thought we had drafted our by-laws specific to our village quite well, but after consultation with HLURB, we find that we don’t even have the number of pages down pat! Ours has only 8 pages. We’re really in a conundrum, especially since we’ve been slaving over the by-laws many nights now, skipping meals, going home late, and sleeping even later. I hope you understand my query. Thanks!

I’m a homeowner and just resigned from our HOA because of the failure of our directors to deliver the basic services in return to the monthly dues which I pay to our HOA particularly safety issues.
In my resignation, I specified my reasons. Grass fire and snakes on the vacant lot neighboring to my property which is 12 lots. Each lot 150 square meters so you can imagine how wide it is. And also stray dogs inside our village. My children nearly died of suffocation due to grassfire. There are snakes in my house
even in my electric meters and switch boxes. 4 months ago my cat fought agains a snake under my machine and fortunately my cat was able to kill it and ate it. Our directors are collecting monthly dues for every lot but are not cutting the grass regularly causing the grass to grow tall higher than me. When they cut they just leave the cut grass in the lot so to let it dry and cause a fire like inferno. And my house is turned into a smokehouse. My nighbors have this bad habit of letting their dogs out on the steets to attack villagers and put dog shits elsewhere. I complained to them but all they can tell me is that the owners are hardheaded. To my disappointment I resigned from our HOA because of frustrations. Three days after while my 12 year old son was biking inside our village with his two friends of almost the same ages when a dog attacked them and the dog nearly got him. But because of panic he crashed on the road,banged his head,skidded and torn his ear and a lot more injuries. The incident ended up with lawsuit against the dog owner who disowned the dog. The directors ordered the security guards to kill the dog. Can I file a lawsuit against our directors for gross negligence considering that until now I’m still paying the exact monthly dues even If I already resigned from our HOA? And also I would like to ask if the new RA9904 or the magna carta is already in effect and if it is when did it take effect?

My name is Rey, presently i got 1 unit in a new town homes in pasig. So far there are 10 occupant.The developer created homeowner association without electing any officers and collecting us the monthly dues. And other thing the monthly due is about 800/month beside of this townhomes dont have any ammenities. I need to know if this is legal and is there any basis for the amount of the mothly dues?

Sect. 28 – Implementing Rules and Regulations of RA 9904 states that the HLURB shall formulate and promulgate in consultation with concerned sectors, the rules and regulations necessary to implement the provisions of this Act within six (6) months of its effectivity. Since RA 9904 was approved and signed into Law by PGMA in January 07, 2010, it is presumed that HLURB had already issued the approved IRR.

Upon browsing from the web, I can only find the DRAFT of the HLURB IRR, hence, I would be very grateful if you can provide me the APPROVED IRR for RA 9904. I need this very urgently, in order that I would be guided accordingly, to settle some disputes/conflicts with the current Board of Directors of our association.

My post asking copy of the APPROVED IRR for RA 9904 was dated December 27, 2010 and December 29, 2010, but yet, four months had already passed, I have not received anything in this regard. How much time will this IRR be approved and consequently officially published. If the IRR cannot be approved then RA 9904 is useless, since we are blind on what rules and regulations are we going to follow.

Trusting you can provide a copy of the APPROVED IRR for RA 9904 the soonest possible time.

Please write or email HLURB regarding this. The last time I checked, it was still a draft. A check in the internet will get you to a site that points to a draft IRR.

I am not the primary source of the IRR. It is the HLURB. However, I do thank you for your trust and confidence in me being providing you with relevant and up to date information. Sadly, the delay and the reason for such delay is not within my powers to answer at this time.

Sect. 28 – Implementing Rules and Regulations of RA 9904 states that the HLURB shall formulate and promulgate in consultation with concerned sectors, the rules and regulations necessary to implement the provisions of this Act within six (6) months of its effectivity. Since RA 9904 was approved and signed into Law by PGMA in January 07, 2010, it is presumed that HLURB had already issued the approved IRR.
Upon browsing from the web, I can only find the DRAFT of the HLURB IRR, hence, I would be very grateful if you can provide me the APPROVED IRR for RA 9904. I need this very urgently, in order that I would be guided accordingly, to settle some disputes/conflicts with the current Board of Directors of our association.

Sect. 28 – Implementing Rules and Regulations of RA 9904 states that the HLURB shall formulate and promulgate in consultation with concerned sectors, the rules and regulations necessary to implement the provisions of this Act within six (6) months of its effectivity. Since RA 9904 was approved and signed into Law by PGMA in January 07, 2010, it is presumed that HLURB had already issued the approved IRR.

Upon browsing from the web, I can only find the DRAFT of the HLURB IRR, hence, I would be very grateful if you can provide me the APPROVED IRR for RA 9904. I need this very urgently, in order that I would be guided accordingly, to settle some disputes/conflicts with the current Board of Directors of our association.

I was brought to your page when I was searching about the powers, roles and functions of HOA. I live in a subdivision in Pasig called Somerset Place – developed by Duraville. see -http://duraville.com/projects.do?category_id=2615 In the advertisements and when we bought the properties, we were told that first few lots near Gate 1 are assigned as commercial lots – see subdivision plan – http://www.pinoyrealty.com/somerset.htm

Last year, the Developers proposed to already organize an HOA but homeowners resisted because many of the amenities (especially the open spaces and gardens) including commercial amenities have not been completed. Developer also collected fees for Metering (Meralco and Manila/Maynilad Water). Up to now, all residents do not have Manila Water meters but submeters. Meralco meters also took so long a time. In my case, 10 months. Some residents are already 3 years over. I paid total 28K for Meralco and Maynilad/Manila Water connection to developer.

Last month homeowners found out that the lots assigned as commercial space are being taken over by another developer which will develop 3 5-storey residential/commercial buildings – http://www.portobellomansion.com/.
We worry about – security, water distribution, parking and traffic congestion and overall lowered investment value. (our properties have value of over 3M na and this new development will sell units at 900K). There will be 122 residential units in Portobello plus 15 commercial units..

I was reading and saw whether provisions of PD 957 (sections 19, 22 and 27) are applicable.

First, please determine if, by virtue of buying a house and lot in the subdivision project you live in, you automatically become a member of the homeowners’ association. Typically, this is the case although membership in a HOA is voluntary according to RA 9904. If you do not pay monthly dues, any service provided by the HOA to its members will be withheld from you. For example, if they have a garbage collection system then the HOA will not pick up your garbage from outside your house. Or, if the HOA is the entity which supplies potable water in your village then they may withhold such service as well. Determine which services are provided by your HOA and ask yourself if you can live without those services to justify not paying the monthly dues.

The nature of a HOA is to have a governing body to service the needs of a particular community. If you are having trouble with the officers of the HOA then you may file a compliant against the erring officials at the HLURB.

Sir,
Have a good day I’m one of the directors of a Homeownres Association here in Caloocan City last week I go the the RDO office of BIR Caloocan to get a TIN Number of our Homeownres Association and together in my hands our Certificate of registration from HLURB but nthe BIR RDO Office advice me to register our association at the SEC because it is the requirement according to the BIR Office Ill go to SEC To register our Association but the SEC did not accept us they said that our association is under the HLURB therefore our HOA is already registered ,My question is why the BIR RDO Caloocan advice me to go to SEC ? How we can get our TIN Number Thank you very much

Under the RA 9904, all registration of Homeowners’ Associations are to be done by the HLURB. I commiserate with your predicament for having to deal with a BIR official who does not know the law concerning MOA. Kindly write the Office of the Commissioner of BIR and report the ignorance of the personnel at the RDO of BIR Caloocan and at the same time ask for a TIN for your HOA. There is an action center at the BIR main office in Quezon City who will be glad to assist your efforts to acquire a TIN for your HOA.

can a person with pending case at the fiscal/prosecutor’s office run for president of a certain home owner’s association? we are at the NHA project at Rodriguez, Rizal, is it legal to distribute certain membeship form without any home owner association yet??

Under our legal system, a person is presumed innocent until proven guilty. Therefore, until a person is convicted by final judgment of a crime he or she can seek the position of President in a HOA.

The distribution of the membership form may be a prelude to setting up a HOA. Or it could be a membership form for a different civic or political organization not necessarily a HOA. Kindly read the content of the form for your information. Thanks for posting your question

May i know what reliefs can members of a homeowner’s association have against a member of the HA board of director who was at the same time the village manager who uses HA money on the pretext of paying HA expenses but did not submit any papers or receipts or liquidation?

Our By-Law says members of the board shall not receive any salary but he collects Php12,000/mo. as village manager compensation. He did not want the members to know about this.

The same person on his own, banned the consultant of the subdivision’s developer as persona non grata; and fired one of the maintenance crew without any resolution from the board just because they have personal issues? I used the past tense because this person recently resigned fron the Board.

Because of this all members of the Board were sued by the developer; and the association is facing a labor dispute, thus putting the association in added financial bind.

Your problem is complicated because the person who caused all the trouble for the HOA is now resigned. Maybe he or she knew that the developer would be suing that is why he or she opted to resign. But the question on my mind was how could this person have gotten away with violating your rules without being sanctioned by the Board. This you must ask your Board members.

If you find more anomalies in the actions of your Board then please consult your By-Laws on how you (the members of the HOA) can unseat and replace the current members of the Board. Any further enforcement of the provisions of the By-Laws would need action from the HLURB. It is best to consult a lawyer after reading the remedies provided in your By-Laws. Furthermore, the lawyer would know what is best on how to deal with the troublemaker-former member of the board also.

First I would like to thank you for your response. Second I have another question/comments – 1. The Board, to my mind, just let this person have his way because: since this is a small community, everybody knows everybody and all are friends; he has a strong character; he intimidates the other members by bringing with him a gun and when he is annoyed or angry he shows the gun to everybody in the clubhouse office;
2. The association has also a case with HLURB against our developer.
3. The lawyer of the HOA is also the personal lawyer of this trouble-maker. Infact this lawyer was his recomendation.
4. When I suggested for the HOA to hire another lawyer, one of the board of directors replied that they were advised by a lawyer to retain this person’s lawyer
as lawyer of the association because he has started the case with the HLURB against the developer. Or could be because of professional ethics?

Our case is truly complicated, any advice would be appreciated. Thank you so much.

May i know what reliefs can members of a homeowner’s association have against a member of the HA board of director who was at the same time the village manager who uses HA money on the pretext of paying HA expenses but did not submit any papers or receipts or liquidation?

Our By-Law says members of the board shall not receive any salary but he collects Php12,000/mo. as village manager compensation. He did not want the members to know about this.

The same person on his own, banned the consultant of the subdivision’s developer as persona non grata; and fired one of the maintenance crew without any resolution from the board just because they have personal issues? I used the past tense because this person recently resigned fron the Board.

Because of this all members of the Board were sued by the developer; and the association is facing a labor dispute, thus putting the association in added financial bind.

Hi Atty. Jojo! This is about the trouble maker i mentioned in my previous comments. In September 2010, this guy got the whole board including himself sign an agreement in his favor as follows: 1. Leave of absence as village manager and board member; 2. monthly salary and reimbursement of expenses; 3. work as independent consusultant/maintain STATUS QUO; 4. security detail as needed; 5. 30% retainer of final settlement with the developer; 6. repayment of loan P160,000.00. This was brought to the knowledge of the members only last sunday during our membership meeting. I questioned this agreement as a whole for CONFLICT OF INTEREST particularly #2, #3. #4. #5 and #6 especially because he was also one of the signatories! Re #6,the asso. needed cash to pay bills.According to him he got a loan of P82,000.00 from 5/6 (loan sharks)for the board to pay bills but no papers were submitted This was in April 2011. The extra amount represents the interest. I asked for a copy of the loan agreement which of course he didnt have. I said we will pay directly to the lender or deduct this from the amount that are still unaccounted for by him. Re #5 I asked a copy of the complaint he claimed he filed against the developer. He said its with the lawyer. I moved for this agreement to be declared null & void by the membership. And the decision was hunanimous! He said this will be added case to be filed against the association and he will see us in court. The members welcomed his bluff.

In another note, the asso. has an estafa case and libel case filed by the developer and LPG supplier respectively. The developer constructed a house and paid the construction cash bond. Now that the house is finished they want their money back but the asso. has no money mainly because of poor collections and his huge reimbursements,amenity bills and salaries and wages. The HO members were charged for special assessments to cover for the amenity bills which some were willing to put up.

The libel case filed by Pryce Gases was because of his newsletter circulated among members somethhng like the lpg tank is short in weight and of poor quality?

All of these were signed the Board so all the board of directors were included in the suit. The asso. has no money to pay for the lawyers fees, so the directors resorted to hire and pay their own lawyers.

Our subdivision is nice, a good investment if i may say so, but because of the conflicts between the developer and the board, between the board and the homeowers, many wants out.

Sorry for my ranting, but can you give us some advise? Thank you very much.

A LIEN is a charge upon a real or personal property for the satisfaction of some debt. An example of a lien on real property is the outstanding (unpaid) due to the HOA. However, please note that this can only happen if this is allowed by the BY-LAWS of the HOA. If the By-Laws of your HOA does not allow the Board to charge a lien on the property over unpaid association dues then it becomes illegal.

Now, when the dues are paid it is the only time that the “HOA lien” can be discharged. Typically, the lien is annotated on the title of the property. And when discharged then the HOA will have the lien on the title cancelled. This lien is important because it assures the payment of monthly dues by the HOA members. Non-payment of dues creates a situation where the maintenance and upkeep of the subdivision project deteriorates.

My advise to you is to check your HOA By-Laws to see if the Board is allowed to charge a LIEN on delinquent property owners. If it is so provided then the members should paid the dues. If no provision for a lien is provided then you should let your Board know that what they are doing is not in accordance with the By-Laws. Good luck.

im one of the board of director our HOA, and right now we are facing the upcoming turnover supposed to be to the hoa..but the problem was that, the developer offer to us the LEASE CONTRACT instead of deed of donation…the developer ignore the PD 1216…i ask hlurb-iv for clarification of PD 1216 and Legal Basis of LEASE CONTRACT….but until now, i dint have the reply yet from HLURB-IV…what should i do and what laws/rules that i can use for them?

By law, the full turn over of the open spaces should be in the name of the HOA. This is not achieved by a lease contract because ownership of the open spaces will be retained by the Developer. Therefore, the offer of a lease contract is without legal basis. As the representatives of the HOA, your Board has every right to demand for the full turn over of the open spaces – by Deed of Donation. Use the provisions of PD 957 and its amendments, as your guide and legal basis.

Teh Deed of donation of tehopen is done by the owner of the subdivsion or i f the owner is also the developer then it is by the developer. Teh donation of the open space is a conditon precedent in the approval of the subdivision permit but the ownership of the open space remains with the owner is it not? In fact if the City government does nto fulfill its pormises or undertaking contained in the Deed of Donation, the owner/developer may get back the open space or whatever right is in the contract. Di ba?

If there is quorum during the approval of the “midnight transaction” then it is a valid BOD action unless there are grounds to invalidate it. If the deal is grossly disadvantageous to the HOA then urge the new BOD to look into the transaction and nullify it if necessary. If the new BOD is uncooperative, you may visit the HLURB and seek guidance on how best to approach and solve the matter at hand. I hope you find a solution to your problem. God bless.

We are new registered HOA(2010) of our subdivision. Last year when register our HOA, we registered Phase I, 2 and 3 but the HLURB told us that since the Phase 2 and 3 is still on going, meaning being level-in, we cannot include it in our registration, so, HLURB scratched the Phase 2 and 3 in our registration.
Then, we were given the right to be registered.
Now, there are residents in Phase 2, we solicit residents of Phase 2 if they want to join us in the HOA, well majority of them agreed/signed in the affidavit we called Affidavit of Membership, notarized and submitted to HLRUB. Now, the developer insisted with some residents that they have a different Certificate to Sell so that we can not include residents of Phase 2 to our HOA.
The developer keep on insisting that we different(Phase 1) and that we let the Phase 2 people to form their own HOA, but the point is, we already have affidavit of residents from phase 2 that they are willing to join us. As a matter of fact, we called an assembly with phase 2 and they agreed to join us, and already paid they membership fee to us and monthly due effective August 2011. We also sought the advise of our Barangay Chairman and he said to the assembly we had, that he will not allow as of now, to form another HOA. FYI – residents of Phase 2 is around 80, 35 paid their Membership Fee, and in the affidavit around 50 signed it.
The developer is the one pushing to form another HOA for Phase 2, even financing the registration etc.
Majority of the residents of Phase 2 are with us.
What we should do?

I think you should respect the contractual stipulations between the phase 2 homeowners and the Developer. The contract that the Phase 2 homeowners signed is binding and has the strength of law. It supersedes the affidavit that they signed which you solicited. It is my opinion that you study the contractual stipulation carefully and learn how you could harmonize it with the By Laws of your HOA to avoid any lawsuit from the Developer. Good luck.

Good day! Atty Jojo, your question and answer portion here is indeed informative and educational.
I would like also to request your legal advice on these:
1. To whom should the developer turnover its amenities, open spaces, etc? To LGU or HOA?
2. The Barangay and LGU had constructed a public school (in 2010) inside our PRIVATE subd w/o the approval of the Board and homeowners. Accdg to them, opes spaces belong to LGU, thus they can do what they want. Are they legally correct? For your info, the subd was turned over to HOA early 1990’s pa.
The subd has minimal open spaces and now they took it away from the homeowners, thus we are deprived of the use and enjoyment of that open spaces.
RA9904 protects the HO and HOA from loss of privacy, security, safety and tranquility. Constructing a public school inside a Private Subd is a threat and it poses and even exposes the HO to danger/risk due to uncontrollable entries of diff people or people of unfamiliar faces.
What legal remedy can we do?

The developer has the option of donating or turning over the roads and open spaces to the LGU or the HOA. Section 31, PD 957 states that “The registered owner or developer of the subdivision or condominium project, upon completion of the development of said project may, at his option, convey by way of donation the roads and open spaces found within the project to the city or municipality wherein the project is located.”

Please check with the developer if indeed the open space has been donated to the LGU. If not, and my guess is that there was no donation involved then make representations with the Mayor for dialogue on how best to harmonize the needs of the public [with the establishment of the public school] and the interests and rights of the HOA members to privacy, security and safety. A legal battle in court will not do both the HOA and the LGU any good. Filing an ejectment proceedings in court will make a villain out of the BOD.

There is a solution to your predicament if only both parties are willing to find an amicable solution. Best of luck.

I found it interesting your predicament about the construction of public school building in the open space of your subdivision thus depriving the residents of their right of use of said open space.

Your problem is similar to us, a public school was also constructed in our open space specifically delineated in our subdivision plan under the premise of deed of donation to the LGU without any hearing or consulatation with affected homeowners.

Under PD 957 and PD 1216 as amended, any owner or developer has an obligation to provide open spaces in a subdivision that he intend to develop and shall allocate a portion of it exclusively for parks, playground and recreational use of residents therein. That the parks and playground has a minimum area requirement to be satisfied. The parks and playground allocated is non-alienable and non-buildable.

Please read Section 2 of PD 1216 to be enlightened about your rights and to determine whether or not the LGU has the right to do whatever it wants.

“Sec. 31. Roads, Alleys, Sidewalks and Open spaces. The owner as developer of a subdivision shall provide adequate roads, alleys and sidewalks. For subdivision projects one (1) hectare or more, the owner or developer shall reserve thirty percent (30%) of the gross area for open space. such open space shall have the following standards allocated exclusively for parks, playgrounds and recreational use:

(a) 9% of gross area for high density or social housing (66 to 100 family lot per gross hectare).

(b) 7% of gross area for medium-density or economic housing (21 to 65 family lot per gross hectare).

(c) 3.5 % of gross area low-density or open market housing (20 family lots and below per gross hectare).

These areas reserved for parks, playgrounds and recreational use shall be non-alienable public lands, and non-buildable. The plans of the subdivision project shall include tree planting on such parts of the subdivision as may be designated by the Authority.

Upon their completion as certified to by the Authority, the roads, alleys, sidewalks and playgrounds shall be donated by the owner or developer to the city or municipality and it shall be mandatory for the local governments to accept provided, however, that the parks and playgrounds may be donated to the Homeowners Association of the project with the consent of the city or municipality concerned. No portion of the parks and playgrounds donated thereafter shall be converted to any other purpose or purposes.”

The provision is very clear, the law provides that an open space for parks and playground must be allocated in any subdivision. Nobody can decide or give permission for its conversion of use, be it the LGU or the affected homeowners even after the said open space has been donated and accepted by the LGU. Instead, the LGU should develop and devote the open space for parks and playground.

I don’t believe that anybody can be considered villain if he or she files a complaint in proper court (HLURB) in the exercise of his or her right against illegal acts even if the result will be the ejectment of the school from the open space.

Please email me and perhaps we can come out with the best legal remedy to address the issue affecting your subdisivision and ours.

I was reading your article and comments and find it very informative and useful. I would like to ask your legal advice for the following:

1. Who has the “power”? Board of Directors or the Officers? I believe it’s the BOD because they are elected by general membership and officer are elected by BOD. Right? But in our case, Officers claim that they have more rights than BOD. As I understood, BOD are the approving body and Officers are the implementors.

2. Anybody can run for BOD as long as he/she is a member, right? What are the qualifications for President? Is it necessary that one must be the owner of the house and/or lot and not just a “kamag-anak” residing on the same address?

Appreciate to receive response from you, sir, as this will bring light to us.

Thanks for your query. The BOD is policy-making body and all actions of the HOA must pass through and approved by the BOD. The officers are usually members of the BOD and therefore are not superior or “powerful” than the BOD. You are correct to say that the officers are the implementors.

A member IN GOOD STANDING is a qualification for a person to run for the position of MEMBER of the BOD. Hence, NOT anybody can run for the position. Who is a member in good standing? He or she has no outstanding obligation to the HOA – meaning he religiously pays his monthly dues or has fully paid the annual dues for the current year, and such other qualifications that may be imposed upon by the BOD based on the By Laws.

Typically, the homeowners do not HOA do not directly elect the president of the HOA. As I said before, the officers are members of the BOD. It is necessary that the member of the HOA is an owner of a lot or house and lot in the subdivision. Hence, a relative residing in the house of the owner-member is not considered as a member of the HOA. However, if the relative is a valid tenant of the house then under RA 9904 he or she may be considered as a member under certain conditions.

Our HOA put up a basketball in the middle of the street near the main gate it totally occupies the way of our village and every time we are going out or in we need to be careful not to be accidentally hit by one of the player or the ball we even thou we request it to be removed it looks like its being protected by the HOA press because he himself is an addict playing basketball can you guide me on how can i make a righteous move to relocate that court thanks big fan of your site

Under the law, a road is for the use of vehicles and pedestrians for the entrance and exit to the subdivision. Hence, it should not be used as a semi-permanent basketball court.

You can file a complaint with the City Hall and let them order the dismantling of the basketball court. A more permanent solution would be to campaign against the current president if he ever runs again as member of the BOD in the next election.

atty. jojo we have deed of donation which was violated by the city of pasig .under the conditions of deed donation it prohibits the sale, lease manage of open spaces to any privateor govt entity.we discovered that they lease part of our parks and playground to private group senior citizen with an ipso facto clause that if contract is violated it reverts to the donee.as pres. of homeowner can we file case with hlurb or regular court.the city also built a building and city gave the management of the basketball court to the barangay which i am questioning the legality of a barangay to take over the property.what actions should we do.

Hello atty. jojo, our HOA has been estabished in 2010, from then on we started collecting monthly dues. however, the developer has not been paying its dues for its unsold lots (still a big percentage remains unsold) neither has it turned over the management (even partially) of security & general maintenance to the HOA. Their reason for not paying the dues is that according to them they are offsetting their expenses on security & general maintenance. My question is: when shall the turn over of property management from the developer to the HOA occur? how can we oblige the developer to pay their dues for the unsold lots? is there a HLURB ruling regarding this? thanks and more power!

We are the Election Committee of a certain HOA and we would like to ask the following questions on section 53-b of the IRR of RA 9904 Disqualifications of Officers since we will be holding our election here come July 22, 2012

Our incumbent board of directors has declared the non turnover of former board of directors of the financial books of the association and as comelec members and in compliance with RA 9904 we made this as a ground to disqualify the former board from running for a seat in our upcoming BOD election.

Now may we ask your opinion on the following:
1. The IRR was approved January 2011 can they be implemented on past board members whos term ended June 2010? if its applicable can you please answer my other questions below
2. Are the former bod disqualified to run for a seat in the bod forever?
3. What can the former board do to lift the disqualification?

We would like to thank you in advance for your immediate reply to our query.

Dear Attorney,
Please review Section 2 of PD1216 in order not to mislead anyone.

The provision in Section 31 of PD 957 has been amended by Section 2 of PD 1216.

The following provision is no longer applicable as you stated in quote:
The developer has the option of donating or turning over the roads and open spaces to the LGU or the HOA. Section 31, PD 957 states that “The registered owner or developer of the subdivision or condominium project, upon completion of the development of said project may, at his option, convey by way of donation the roads and open spaces found within the project to the city or municipality wherein the project is located.”

It is no longer true that the owner/developer has the option of donating the roads and open spaces to LGU. There is already a mandatory requirement to donate or turn-over to the LGU the roads and open spaces found within any approved subdivision in the Philippines.

Under section 2 of PD 1216, the donation of open spaces and roads is not optional but mandatory.

Section 2 of PD 1216 provides:
“Upon their completion as certified to by the Authority, the roads, alleys, sidewalks and playgrounds shall be donated by the owner or developer to the city or municipality and it shall be mandatory for the local governments to accept provided, however, that the parks and playgrounds may be donated to the Homeowners Association of the project with the consent of the city or municipality concerned. No portion of the parks and playgrounds donated thereafter shall be converted to any other purpose or purposes.”

Hi atty. jojo, we have an outstanding association due amounting to ~42K including penalty interests. Problem here is that we still havent moved in to the house, also we were just informed of this delinquent payment as the association due’s billing statement were being sent to the said empty house. What your take on this? Regards.

The monthly dues of a HOA is charged once you become a bona fide member. How? If you have fully paid the house and lot then you automatically become a member.

Now, it is unfortunate that you have not been able to move into your house which is why you have not received the billing statement. My suggestion is to ask for the waiver of the penalty interest. Then request for an easy payment scheme from the HOA that will fit your monthly budget and will not affect the other expenses in the house.

Hi atty. jojo!
Good day sir. We are living in a condominium right now here at paranaque. The developer organize a condominium corporation without notifying us homeowners. The officers appointed are all from their company and not a unit owner. Is this legal? Also, are condominiums under HLURB also. Thank you very much. God Bless and More power.

It seems strange that the developer did not notify the unit owners that they were going to organize the Condominium Corporation. Be that as it may, it is typical when the Developer organized the CC, the officer appointed are from their company. Ask for a copy of the Articles of Incorporation of the CC and look at the qualifications of a Board member and Officer of the CC. If the appointees are not qualified, look into the By-Law of the CC on how to remove the unqualified Board members and Officer.

If the current Officers of the Board will not provide you with the Article of Incorporation and By-Laws, you can get these at the SEC in Mandaluyong.

thank you very much atty. jojo. so far po we had a meeting with the board of directors appointed by the developer. they will set a meeting for the resolution regarding the election of the officer and ratification of the by laws. thanks you so much for the advice. it helped a lot.

Can I, as a member of the board of directors of my subdivision, on my personally capacity, file a complaint for removal from office against the 2012 board (who are also the 2013 board) for violations of the bylaws and relevant provisions of the Magna Carta? The present board approved last year a resolution granting an officer of the board P1,000 monthly “allowance” for services rendered on a monthly basis. This is a clear violation of the bylaws which states that an officer may only receive PER DIEM (not compensation), and likewise the IRR of the Magna Carta which states that no officer / director / trustee of the association shall be entitled to any compensation. Or do I need to let a majority of the association members sign a petition for removal?

Can I file a case before the HLURB for negligence / violation of the bylaws?

Please check with your By-Laws regarding the procedure in the removal of members of the Board as well as the grounds for the removal.

Take note of Sec. 65 of the IRR of RA 9904: “A director or trustee may be removed from office, through a verified petition duly signed by the majority members of an association, for any cause provided in the by-laws of the association.”

The petition for the removal of the director shall be filed at the HLURB.

Atty. Jojo, our HOA wants to close a road in our subdivision para sa main gate na lang po ang entrance and exit of all vehicles kasi napakarami na pong robbery and patayan caused by riding in tandem. the problem is the road is already donated to the city government. what can the HOA do to close it? thanks and God bless!

the first Hoa was registered in 1987 with Then HIGC, the second hoa was registered sometime in 2010. Both were acknowledge or were given a registration number with HLURB because the later misled the HLURB by saying that there was no existing HOA at the time of their registration (2010). Can we file a petition of nullity of registration by reason of misrepresentation, overlapping areas. The first hoa still exist up to present. in effect there are two existing hoa in our community. though the 1987 registered hoa is the prevailing dominant hoa being active while the 2010 hoa is inactive but sometimes sow confusion to homeowners. Thank you so much for your prompt reply

Can we advertise or put the names of those homeowners who are not paying their monthly dues in our bulletin board. What repercussion if there is any we can expect and what would be our possible defense just in case they would do the same. thanks and more power atty!

Good day po Atty jojo, i just would like to ask how to initiate a new sets of officers if the old officers of the association especially the board did not make any actions to have elections, where in fact they are not being registered in the SEC and HULRB, and there is no by laws implemented as well.. Give me advise and the right action because fiesta (May ) is almost approaching and it is really necessary to have officers for the activities and improvements of our society in our association…God bless and more power.

I wish there is a quick way to resolve your problem, but there is none. The situation in your community association is similar to others who are victims of mismanagement from their present set of officers and board members – who turned out to be illegally exercising powers and duties over their member-homeowners who are not aware of said situation.

Under Section 4, RA 9904, every HOA is required to register with the HLURB. If the “old” HOA was not registered with the SEC or HIGC then and with the HLURB now, then the officers have not been clothed with powers to act as officers and Board Members of your HOA.

Your recourse is to register their HOA as if it was a newly organized one. The procedure for registration of a new HOA can be found in Section 24, of the Implementing Rules and Regulations of RA 9904.

The application should be submitted to the nearest regional office of the HLURB having jurisdiction over the location of the HOA. They say that approval should come within 15 days upon receipt of the complete documentary requirements by the HLURB.

You know that your HOA is already registered when HLURB issues the CERTIFICATE OF REGISTRATION in the name of the HOA. However, to fully operate as a HOA, the association should register with the BIR so that it can be issued a Tax Identification Number (TIN). It should likewise register its books of account and apply for the issuance of booklets of BIR-registered Official Receipts.

Only after receipt of the BIR-stamped books of account, BIR-registered OR, and the BIR Certificate of Registration (Form 2303) can the HOA perform its business to serve its members and other stakeholders. The monthly dues of Homeowner-members of HOAs are now taxable under the latest regulation of the BIR. Read more of this by following this link – .

In the near future, we will be coming up with a guidebook on “How to Register Your HOA”. In the meantime, the website of the HLURB provides a guide on HOA registration.

Is it compulsory for the homeowners to turn-over the facilities e.g. road, posts, etc to the city government? Or can we decide as association to maintain on our own the facilities of the subdivision. There is no existing public road within the subdivision.

Second, if the facilities are turn-over to the city government, does it mean the city now has the main control of the said facilities?

Based on Section 31 of PD 957, upon completion of the subdivision project, as certified to by the HLURB, the roads, alleys, sidewalks and playgrounds shall be donated by the owner or developer to the city or municipality and it shall be mandatory for the local governments to accept provided, however, that the parks and playgrounds may be donated to the Homeowners Association of the project with the consent of the city or municipality concerned.

So, it is the owner or developer who shall donate the open spaces to the LGU.

But, the parks and playground may be donated by the Developer to the HOA with the consent of the LGU. Once donated, the maintenance of the park and playground is now the responsibility of the HOA. However, the HOA Board can donate the park and playground to the LGU if its maintenance is deemed to be too cumbersome for the HOA due to lack of financial resources.

Once, donated all roads and other open spaces is now under the control and maintenance of the LGU concerned. Simply put, the HOA looses control over the donated open spaces.

Would like to know are rules or specifics on how to conduct a votation or referendum among the homeowners? We would like to improve our water system, as such we would like to conduct a referendum for the members to choose between 2 water system company. Just would like to know if there is a specific guideline we need to observe…